[NEW] Bitcoin halving is an opportunity for large miners to acquire smaller ones, says Marathon Digital

Regarding Bitcoin (BTC), which is expected to undergo its fourth halving around mid-April, Fred Thiel, CEO of Marathon Digital, a major miner in the United States, stated his view that "this halving will have a significant impact on small miners."

In the cryptocurrency market, there are strong voices expecting a bullish market, as Bitcoin's scarcity will increase further after this halving. On the other hand, there are concerns that some miners will withdraw and sell large amounts of Bitcoin to replenish their funds, as mining rewards will decrease from 6.25 BTC to 3.125 BTC during the halving.

In this context, Thiel warned that small Bitcoin miners "will face strong economic concerns" after the halving in April.

In an interview broadcast on CNBC, Thiel pointed out that there is unequal access to funds and equipment between small and medium-sized enterprises and large companies in the current mining market. He emphasized that while large companies can easily raise funds, small miners are left behind and have limited fundraising options, which hinders their growth.

Thiel also predicted that the reduction in mining rewards will make "these small and medium-sized companies financially unsustainable, paving the way for industry restructuring by the industry giants."

Marathon Digital revealed that it has recently completed two acquisitions and plans to continue expanding its mining business. The acquisitions were mining facilities in Texas and Nebraska, and the company claimed that it will be in a strong position to face various challenges surrounding Bitcoin mining in the future. Marathon Digital plans to continue acquiring small miners.

2023 has been a breakout year for Marathon Digital. Revenues for the past year were $387.5 million (approximately 58.6 billion yen), a 229% increase compared to the previous year.

Some say miners will withdraw

While some miners are expected to withdraw due to the Bitcoin halving, analysts at asset management firm Bernstein believe this will be "minimal."

The reason for this is that the bullish cryptocurrency market will strengthen the balance sheets of cryptocurrency-related companies, including miners. In addition, the hash rate tends to drop sharply after the halving, but the firm predicts that this will also decrease this time.

Reference:Press
Image: Shutterstock

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